Intrinsic value of Enbridge Inc - ENB

Previous Close

$36.51

  Intrinsic Value

$4.16

stock screener

  Rating & Target

str. sell

-89%

Previous close

$36.51

 
Intrinsic value

$4.16

 
Up/down potential

-89%

 
Rating

str. sell

We calculate the intrinsic value of ENB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 73.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  47,306
  48,394
  49,637
  51,034
  52,581
  54,278
  56,127
  58,128
  60,284
  62,597
  65,072
  67,713
  70,525
  73,514
  76,685
  80,045
  83,603
  87,365
  91,339
  95,536
  99,965
  104,635
  109,557
  114,744
  120,206
  125,958
  132,012
  138,382
  145,084
  152,133
Variable operating expenses, $m
  45,576
  46,540
  47,641
  48,878
  50,248
  51,751
  53,388
  55,160
  57,069
  59,118
  57,627
  59,966
  62,456
  65,103
  67,911
  70,887
  74,037
  77,369
  80,889
  84,605
  88,527
  92,663
  97,022
  101,615
  106,453
  111,546
  116,907
  122,549
  128,484
  134,727
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  45,576
  46,540
  47,641
  48,878
  50,248
  51,751
  53,388
  55,160
  57,069
  59,118
  57,627
  59,966
  62,456
  65,103
  67,911
  70,887
  74,037
  77,369
  80,889
  84,605
  88,527
  92,663
  97,022
  101,615
  106,453
  111,546
  116,907
  122,549
  128,484
  134,727
Operating income, $m
  1,729
  1,854
  1,996
  2,156
  2,333
  2,527
  2,739
  2,968
  3,214
  3,479
  7,445
  7,747
  8,069
  8,411
  8,774
  9,158
  9,565
  9,996
  10,451
  10,931
  11,437
  11,972
  12,535
  13,128
  13,753
  14,411
  15,104
  15,833
  16,600
  17,406
EBITDA, $m
  9,195
  9,407
  9,649
  9,920
  10,221
  10,551
  10,910
  11,299
  11,718
  12,168
  12,649
  13,162
  13,709
  14,290
  14,906
  15,559
  16,251
  16,982
  17,755
  18,570
  19,431
  20,339
  21,296
  22,304
  23,366
  24,484
  25,661
  26,899
  28,202
  29,572
Interest expense (income), $m
  1,347
  3,489
  3,594
  3,717
  3,858
  4,017
  4,192
  4,385
  4,594
  4,821
  5,066
  5,328
  5,609
  5,909
  6,228
  6,567
  6,926
  7,308
  7,711
  8,138
  8,589
  9,065
  9,567
  10,097
  10,655
  11,244
  11,864
  12,516
  13,203
  13,925
  14,686
Earnings before tax, $m
  -1,760
  -1,740
  -1,721
  -1,702
  -1,684
  -1,665
  -1,646
  -1,627
  -1,607
  -1,587
  2,117
  2,138
  2,160
  2,183
  2,207
  2,232
  2,258
  2,285
  2,313
  2,342
  2,372
  2,404
  2,438
  2,473
  2,510
  2,548
  2,588
  2,630
  2,674
  2,721
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  572
  577
  583
  589
  596
  603
  610
  617
  624
  632
  641
  649
  658
  668
  678
  688
  699
  710
  722
  735
Net income, $m
  -1,760
  -1,740
  -1,721
  -1,702
  -1,684
  -1,665
  -1,646
  -1,627
  -1,607
  -1,587
  1,545
  1,561
  1,577
  1,594
  1,611
  1,629
  1,648
  1,668
  1,688
  1,710
  1,732
  1,755
  1,780
  1,805
  1,832
  1,860
  1,889
  1,920
  1,952
  1,986

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  170,164
  174,078
  178,551
  183,574
  189,140
  195,246
  201,895
  209,093
  216,848
  225,170
  234,073
  243,573
  253,688
  264,438
  275,845
  287,933
  300,729
  314,261
  328,559
  343,655
  359,585
  376,383
  394,091
  412,747
  432,397
  453,086
  474,862
  497,776
  521,884
  547,240
Adjusted assets (=assets-cash), $m
  170,164
  174,078
  178,551
  183,574
  189,140
  195,246
  201,895
  209,093
  216,848
  225,170
  234,073
  243,573
  253,688
  264,438
  275,845
  287,933
  300,729
  314,261
  328,559
  343,655
  359,585
  376,383
  394,091
  412,747
  432,397
  453,086
  474,862
  497,776
  521,884
  547,240
Revenue / Adjusted assets
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
  0.278
Average production assets, $m
  113,486
  116,096
  119,080
  122,430
  126,141
  130,214
  134,648
  139,449
  144,620
  150,171
  156,108
  162,444
  169,190
  176,359
  183,967
  192,029
  200,563
  209,587
  219,123
  229,191
  239,815
  251,018
  262,828
  275,270
  288,375
  302,173
  316,696
  331,978
  348,056
  364,967
Working capital, $m
  -2,696
  -2,758
  -2,829
  -2,909
  -2,997
  -3,094
  -3,199
  -3,313
  -3,436
  -3,568
  -3,709
  -3,860
  -4,020
  -4,190
  -4,371
  -4,563
  -4,765
  -4,980
  -5,206
  -5,446
  -5,698
  -5,964
  -6,245
  -6,540
  -6,852
  -7,180
  -7,525
  -7,888
  -8,270
  -8,672
Total debt, $m
  66,551
  68,836
  71,449
  74,382
  77,632
  81,199
  85,082
  89,285
  93,814
  98,674
  103,874
  109,422
  115,329
  121,607
  128,268
  135,328
  142,801
  150,703
  159,053
  167,870
  177,172
  186,983
  197,324
  208,219
  219,695
  231,777
  244,494
  257,876
  271,955
  286,763
Total liabilities, $m
  99,376
  101,661
  104,274
  107,207
  110,457
  114,024
  117,907
  122,110
  126,639
  131,499
  136,699
  142,247
  148,154
  154,432
  161,093
  168,153
  175,626
  183,528
  191,878
  200,695
  209,997
  219,808
  230,149
  241,044
  252,520
  264,602
  277,319
  290,701
  304,780
  319,588
Total equity, $m
  70,788
  72,416
  74,277
  76,367
  78,682
  81,222
  83,988
  86,983
  90,209
  93,671
  97,374
  101,326
  105,534
  110,006
  114,751
  119,780
  125,103
  130,733
  136,680
  142,961
  149,587
  156,576
  163,942
  171,703
  179,877
  188,484
  197,542
  207,075
  217,104
  227,652
Total liabilities and equity, $m
  170,164
  174,077
  178,551
  183,574
  189,139
  195,246
  201,895
  209,093
  216,848
  225,170
  234,073
  243,573
  253,688
  264,438
  275,844
  287,933
  300,729
  314,261
  328,558
  343,656
  359,584
  376,384
  394,091
  412,747
  432,397
  453,086
  474,861
  497,776
  521,884
  547,240
Debt-to-equity ratio
  0.940
  0.950
  0.960
  0.970
  0.990
  1.000
  1.010
  1.030
  1.040
  1.050
  1.070
  1.080
  1.090
  1.110
  1.120
  1.130
  1.140
  1.150
  1.160
  1.170
  1.180
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.250
  1.260
Adjusted equity ratio
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416
  0.416

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,760
  -1,740
  -1,721
  -1,702
  -1,684
  -1,665
  -1,646
  -1,627
  -1,607
  -1,587
  1,545
  1,561
  1,577
  1,594
  1,611
  1,629
  1,648
  1,668
  1,688
  1,710
  1,732
  1,755
  1,780
  1,805
  1,832
  1,860
  1,889
  1,920
  1,952
  1,986
Depreciation, amort., depletion, $m
  7,466
  7,553
  7,652
  7,764
  7,888
  8,024
  8,171
  8,331
  8,504
  8,689
  5,204
  5,415
  5,640
  5,879
  6,132
  6,401
  6,685
  6,986
  7,304
  7,640
  7,994
  8,367
  8,761
  9,176
  9,613
  10,072
  10,557
  11,066
  11,602
  12,166
Funds from operations, $m
  5,706
  5,813
  5,931
  6,062
  6,204
  6,359
  6,525
  6,705
  6,897
  7,102
  6,749
  6,976
  7,217
  7,472
  7,743
  8,030
  8,334
  8,654
  8,992
  9,349
  9,726
  10,123
  10,541
  10,981
  11,444
  11,932
  12,446
  12,986
  13,554
  14,152
Change in working capital, $m
  -53
  -62
  -71
  -80
  -88
  -97
  -105
  -114
  -123
  -132
  -141
  -151
  -160
  -170
  -181
  -192
  -203
  -214
  -227
  -239
  -252
  -266
  -281
  -296
  -311
  -328
  -345
  -363
  -382
  -402
Cash from operations, $m
  5,759
  5,875
  6,002
  6,141
  6,292
  6,455
  6,631
  6,819
  7,019
  7,234
  6,890
  7,126
  7,377
  7,643
  7,924
  8,222
  8,536
  8,868
  9,219
  9,588
  9,978
  10,389
  10,821
  11,277
  11,756
  12,260
  12,791
  13,349
  13,936
  14,553
Maintenance CAPEX, $m
  -3,709
  -3,783
  -3,870
  -3,969
  -4,081
  -4,205
  -4,340
  -4,488
  -4,648
  -4,821
  -5,006
  -5,204
  -5,415
  -5,640
  -5,879
  -6,132
  -6,401
  -6,685
  -6,986
  -7,304
  -7,640
  -7,994
  -8,367
  -8,761
  -9,176
  -9,613
  -10,072
  -10,557
  -11,066
  -11,602
New CAPEX, $m
  -2,222
  -2,610
  -2,984
  -3,350
  -3,712
  -4,073
  -4,435
  -4,800
  -5,172
  -5,550
  -5,938
  -6,336
  -6,746
  -7,169
  -7,608
  -8,062
  -8,534
  -9,025
  -9,536
  -10,068
  -10,624
  -11,204
  -11,809
  -12,443
  -13,105
  -13,798
  -14,523
  -15,282
  -16,078
  -16,911
Cash from investing activities, $m
  -5,931
  -6,393
  -6,854
  -7,319
  -7,793
  -8,278
  -8,775
  -9,288
  -9,820
  -10,371
  -10,944
  -11,540
  -12,161
  -12,809
  -13,487
  -14,194
  -14,935
  -15,710
  -16,522
  -17,372
  -18,264
  -19,198
  -20,176
  -21,204
  -22,281
  -23,411
  -24,595
  -25,839
  -27,144
  -28,513
Free cash flow, $m
  -171
  -518
  -851
  -1,178
  -1,500
  -1,822
  -2,144
  -2,470
  -2,800
  -3,137
  -4,053
  -4,413
  -4,784
  -5,166
  -5,562
  -5,972
  -6,399
  -6,842
  -7,303
  -7,784
  -8,285
  -8,809
  -9,355
  -9,927
  -10,525
  -11,150
  -11,804
  -12,490
  -13,207
  -13,959
Issuance/(repayment) of debt, $m
  1,941
  2,286
  2,613
  2,933
  3,250
  3,566
  3,883
  4,204
  4,529
  4,860
  5,199
  5,548
  5,907
  6,278
  6,662
  7,060
  7,473
  7,903
  8,350
  8,816
  9,303
  9,811
  10,341
  10,896
  11,475
  12,082
  12,717
  13,382
  14,079
  14,808
Issuance/(repurchase) of shares, $m
  3,078
  3,368
  3,582
  3,792
  3,999
  4,205
  4,412
  4,621
  4,833
  5,049
  2,158
  2,391
  2,631
  2,878
  3,134
  3,399
  3,675
  3,962
  4,260
  4,571
  4,895
  5,233
  5,587
  5,956
  6,342
  6,746
  7,170
  7,612
  8,076
  8,562
Cash from financing (excl. dividends), $m  
  5,019
  5,654
  6,195
  6,725
  7,249
  7,771
  8,295
  8,825
  9,362
  9,909
  7,357
  7,939
  8,538
  9,156
  9,796
  10,459
  11,148
  11,865
  12,610
  13,387
  14,198
  15,044
  15,928
  16,852
  17,817
  18,828
  19,887
  20,994
  22,155
  23,370
Total cash flow (excl. dividends), $m
  4,847
  5,136
  5,344
  5,547
  5,749
  5,950
  6,151
  6,355
  6,561
  6,772
  3,304
  3,526
  3,754
  3,990
  4,234
  4,487
  4,749
  5,022
  5,307
  5,603
  5,912
  6,235
  6,572
  6,925
  7,293
  7,679
  8,082
  8,505
  8,948
  9,411
Retained Cash Flow (-), $m
  -3,078
  -3,368
  -3,582
  -3,792
  -3,999
  -4,205
  -4,412
  -4,621
  -4,833
  -5,049
  -3,704
  -3,952
  -4,208
  -4,472
  -4,745
  -5,029
  -5,323
  -5,629
  -5,948
  -6,280
  -6,627
  -6,988
  -7,366
  -7,761
  -8,174
  -8,606
  -9,059
  -9,533
  -10,029
  -10,548
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,769
  1,768
  1,761
  1,756
  1,750
  1,744
  1,739
  1,733
  1,728
  1,723
  -399
  -426
  -454
  -482
  -512
  -542
  -574
  -607
  -641
  -677
  -714
  -753
  -794
  -837
  -881
  -928
  -977
  -1,028
  -1,081
  -1,137
Discount rate, %
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
  1,641
  1,510
  1,375
  1,242
  1,112
  987
  867
  754
  648
  550
  -107
  -95
  -83
  -71
  -59
  -49
  -40
  -31
  -24
  -19
  -14
  -10
  -7
  -5
  -3
  -2
  -1
  -1
  0
  0
Current shareholders' claim on cash, %
  96.0
  91.9
  87.8
  83.8
  79.8
  76.0
  72.3
  68.8
  65.4
  62.1
  60.8
  59.4
  58.0
  56.5
  55.1
  53.6
  52.1
  50.6
  49.1
  47.6
  46.1
  44.6
  43.2
  41.7
  40.3
  39.0
  37.6
  36.3
  35.0
  33.8

Enbridge Inc. is a Canada-based energy transportation and distribution company. The Company is engaged in delivering energy. It operates through five segments: Liquids Pipelines, Gas Distribution, Gas Pipelines and Processing, Green Power and Transmission, and Energy Services. Liquids Pipelines consists of common carrier and contract crude oil, natural gas liquids (NGL), and refined products pipelines and terminals, including Canadian Mainline, Lakehead Pipeline System, Mid-Continent and Gulf Coast and Regional Oil Sands System. Gas Distribution consists of its natural gas utility operations, the core of which is Enbridge Gas Distribution Inc. Green Power and Transmission consists of its investments in renewable energy assets and transmission facilities. Renewable energy assets consist of wind, solar, geothermal and waste heat recovery facilities in Canada. Energy Services undertake physical commodity marketing activity and logistical services, and oversee refinery supply services.

FINANCIAL RATIOS  of  Enbridge Inc (ENB)

Valuation Ratios
P/E Ratio 22.5
Price to Sales 1.3
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 8.9
Price to Free Cash Flow -1075.9
Growth Rates
Sales Growth Rate 2.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -28.7%
Cap. Spend. - 3 Yr. Gr. Rate -9.1%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 170.6%
Total Debt to Equity 191.5%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.5%
Ret/ On Assets - 3 Yr. Avg. -8.6%
Return On Total Capital 3.3%
Ret/ On T. Cap. - 3 Yr. Avg. 2.3%
Return On Equity 10.3%
Return On Equity - 3 Yr. Avg. 7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 30.5%
Gross Margin - 3 Yr. Avg. 25.8%
EBITDA Margin 18.8%
EBITDA Margin - 3 Yr. Avg. 14.7%
Operating Margin 7.5%
Oper. Margin - 3 Yr. Avg. 7.2%
Pre-Tax Margin 7.1%
Pre-Tax Margin - 3 Yr. Avg. 4.3%
Net Profit Margin 6%
Net Profit Margin - 3 Yr. Avg. 3.5%
Effective Tax Rate 5.8%
Eff/ Tax Rate - 3 Yr. Avg. 536.3%
Payout Ratio 69.8%

ENB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ENB stock intrinsic value calculation we used $46378 million for the last fiscal year's total revenue generated by Enbridge Inc. The default revenue input number comes from 0001 income statement of Enbridge Inc. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ENB stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.8%, whose default value for ENB is calculated based on our internal credit rating of Enbridge Inc, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Enbridge Inc.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ENB stock the variable cost ratio is equal to 96.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ENB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Enbridge Inc.

Corporate tax rate of 27% is the nominal tax rate for Enbridge Inc. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ENB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ENB are equal to 239.9%.

Life of production assets of 40 years is the average useful life of capital assets used in Enbridge Inc operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ENB is equal to -5.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $69470 million for Enbridge Inc - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 2023.001 million for Enbridge Inc is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Enbridge Inc at the current share price and the inputted number of shares is $73.9 billion.

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